Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 22nd of August.
A number of years ago, there was a market guru named Joseph Granville who came up with the phrase "bag holder". I've always loved the term because it really describes exactly what's happened to a lot of investors in social media these days. Yes, they've been left holding the bag and the bag has little or nothing in it!
Social media has been decidedly unsocial to investors. So what's the ahead for the likes of Facebook, Zynga, Groupon and other public social media companies?
Let's take a look at Groupon first. I think that merchants really don't want to discount to such a degree that they lose money on promoting their businesses. The people who use Groupon don't come back. So the basic business model has a fundamental flaw as it is being repudiated by the very companies it was supposed to help. Continue reading "MarketClub TV for 8/22/12: Just how unsocial is social media?"